University of Minnesota endowment returns 1.6% for year

Investment returns of the University of Minnesota Foundation, Minneapolis, exceeded returns of its policy benchmark in reporting periods ended June 30, an endowment update showed.

The endowment returned 1.6% in the year ended June 30 compared to -4.2% for its benchmark.

Over longer periods ended June 30, annualized net returns of the endowment were 6% for five years (benchmark, 4.2%) and 8.2% for 10 years, (7.3%). Since inception in January 1999, the annualized return was 7.4% (7.8%).

The return was 9.2% in the year ended June 30, 2019, above its benchmark return of 7.4%.

Assets remained flat at $2.5 billion over the 12 months ended June 30.

The endowment's asset allocation as of June 30 was global equity, 41.9%; private equity, 27.3%; credit and reinsurance, 19.7%; and bonds and cash, 11.1%. Individual asset class returns were not provided in the 2020 update.

Endowment assets are managed by University of Minnesota Foundation Investment Advisors, a non-profit subsidiary of the foundation.